RBI extends relaxation for periodic updation of KYC till 31st March 2022
- ByTejika Bajaj | December 30, 2021
Amidst the recent surge of uncertainty due to the rise of a new variant of Covid, Omnicron, the Government of India has extended the relaxation for the periodic updation of KYC (Know Your Customer) by 3 months thus extending the deadline from 31st December 2021 to 31st March 2022.
The Reserve Bank of India has announced that no restrictions on operations of such accounts would take place till 31st March 2022 unless otherwise notified by an official authority solely due to the rise in uncertainty arising due to omicron.
In May, the RBI had recommended the regulated entities asking them not to impose any kind of punitive restrictions on the operations of accounts of its customers on their failure to comply with the KYC updation norm till December end.
The regulated entities’ KYC policy includes four main elements- customer acceptance policy, risk management, customer identification procedures and monitoring of transactions.
As per the key provisions introduced by the RBI in 2016, no account is allowed to be opened in an anonymous name and all accounts must be linked with the appropriate Aadhar card number to ensure eviction of fake accounts in an attempt to curb money laundering.
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